One of the biggest struggles Americans have is paying back their debt. Even while the economy is soaring, and unemployment is at record lows, debt continues to pile up. It seems as if we find more reasons to keep getting more debt and less reasons to actually pay back. Yet, the good times never last and there will be a time when most Americans regret of the debt they’ve accumulated.
Collectively, Americans all around $13.2 trillion in personal debt. This combines all types of debt including credit card debt, mortgage debt, student loans, auto loans, and personal loans. Were always eager to buy the next big thing, but we scarcely consider the impact paying and trust will have down the road. Especially if the economy slows down or work dries up.
The worst thing about debt is the stress that puts on so many people. Student loan debt alone is forcing young Americans to put off making major life decisions. New studies have revealed that millennials are waiting longer to get married, by home, or start a business. They’re waiting longer than any other previous generation.
Having a lot of debt causes a lot of major problems. They can be difficult to keep up with the payments. When that happens, usually debt collectors come calling in a have many tricks and tactics to use to get you to pay up. Not to mention how much unpaid debt can destroy your credit score and make life even more difficult for you.
Let’s look at several ways removing debt from your life can ease your stress:
1) No More Debt Collectors Calling
Nothing can strike more fear in a person that a call from a debt collector. As stated previously, they have many tricks and tools up their sleeves to help entice you to pay up. They don’t care about what you’re going through or any situation you might be in. The truth is, they’ll continue bugging you until you do pay them what you owe.
This can be very stressful, but the only way to get them off your back is by being current. Once the debt is paid off, it is officially yours! You won’t have to worry any longer about whether you will lose what you’ve been working hard to pay off. Pay off your debts as soon as you can and life will get easier. Remember the feeling of being hounded and make better decisions.
2) You’ll Have More Money
There’s already so much we have to pay for. Most Americans can’t even afford to pay for their healthcare or insurance. You never know when your car insurance is going to go up, you might need a little emergency money. When it be good to finally have a little extra disposable income? When you pay off certain debts, you finally own what you are paying off. That means no more money is escaping out of your purse or wallet. You can finally see or have a little extra spending money if you’re spending is already covered.
3) You Will Finally Repair Your Credit Score
Repairing your credit score takes time. It may be really low right now, but have to stay that way. Don’t let it get worse by acquiring more and more debt. And as you begin to pay off your debt and the total amount you owed starts going down, that’s when your credit score starts to inch back up. When you finally pay off the debt in full, you’ll be seen in a better light in the event you need to take out credit again.
4) You Can Finally Plan for the Future
Here’s a difficult fact: most Americans are ill-prepared for retirement. We spoke previously about how debt is forcing people to put off making major decisions. One of those major decisions is the ability to afford saving for retirement. Having more money provides you with many more options. The more you save, the more you can plan a good vacation, for retirement, or even decide to start a business. Maybe you want to invest in the stock market. Whatever it is you want to do, the list that you have, the better off you’ll be.